Supply Chain Management Practices at Nokia Corporation
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Case Details:
Case Code : OPER086
Case Length : 14 Pages
Period : 2005-09
Organization : Nokia Corporation
Pub Date : 2009
Teaching Note :Not Available
Countries : Finland, US
Industry : Telecom
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Introduction Contd...
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The companies were judged on the basis of two components -- financials and opinion, where the financial component accounted for 60 percent and the opinion component for 40 percent of the total score.
The financial component included "return on assets i.e. the ratio of net income and total assets, inventory turns i.e. the ratio of cost of goods sold and inventory, and revenue growth i.e
the change in revenue from prior year"6.
The opinion component included a panel of AMR Research experts and a peer panel, each giving a maximum score of 20 percent.
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Founded in 1865 as a paper mill, Nokia started producing phones in 1982. The company had interests in several businesses including telecommunications, consumer electronics, rubber, and cable. In 1992, Nokia took a strategic decision to focus only on the telecommunications business and to close down its other businesses. And this decision paid off. Its focus on the telecommunications business had turned Nokia into a global leader by the year 1998.
According to industry experts, Nokia's supply chain management was the key factor for the success of the company. The company maintained a long-term relationship with its suppliers and helped them in improving their processes...
Excerpts
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